£550,000 capital raise funds mining, stockpiling and essential creditors as the project waits for revised offtake terms and a new production timetable

• Premier raised approximately £550,000 (US$735,930) before expenses through a direct subscription priced at 0.01375 pence (US$0.000184) per share
• The four billion new shares increase Premier’s issued share capital by 8.7% to 50.07 billion shares and account for almost 8% of the enlarged total
• Zulu’s processing plant will remain idle until Premier concludes Long Stop Date negotiations with Canmax Technologies and confirms the next production campaign

Harare - Premier African Minerals raised approximately £550,000 (US$735,930) on 29 July 2026 through the issue of four billion new shares to maintain mining and stockpiling at its Zulu Lithium and Tantalum Project in Zimbabwe as unresolved negotiations with Canmax Technologies continue to delay the plant restart. The AIM listed miner issued the shares at 0.01375 pence (US$0.000184) each through a direct subscription arranged by the company.

The capital was required after Premier confirmed that plant operations would no longer recommence during July as previously planned. The company will use the proceeds for Zulu’s operating expenditure, continued mining and stockpiling, payments to essential creditors and general working capital while it seeks an extension of the Long Stop Date under its prepayment and offtake arrangements with Canmax.

“This funding provides important working capital to contribute towards ongoing operational requirements at Zulu, including the continuation of mining and stockpiling activities,” managing director Graham Hill said.

The transaction gives Premier immediate liquidity and increases its issued share capital from approximately 46.07 billion shares to 50.07 billion shares. The four billion shares expand the existing share base by 8.7% and account for almost 8% of the enlarged total, reducing the proportional ownership of shareholders who did not participate in the subscription.

Premier completed the raise within its existing share authorities. The new shares will carry the same rights as current ordinary shares, with admission to trading on AIM expected on or around 3 August 2026.

The use of proceeds places Zulu’s immediate priority on preserving operational continuity before sustained commercial production has been achieved. Premier is funding mine activity, ore accumulation and creditor obligations during a period when the processing plant is idle and the project is generating no disclosed recurring production revenue.

Mining and stockpiling remain active at a reduced scale. Premier is building an adequate run of mine ore inventory before the next plant campaign, which management considers the most efficient use of available resources and the best route to maximising the value of the next sustained optimisation run.

The company has also continued engineering work across the processing plant. June operations identified opportunities to improve reliability and operability, leading to modifications, upgrades and maintenance throughout the circuit. The next campaign will test whether those interventions can support continuous plant performance and consistent concentrate production.

The Long Stop Date extension now determines Zulu’s immediate commercial path.

Canmax is reviewing operational and commissioning data from the upgraded flotation circuit together with the wider technical progress achieved at the project. Plant operations will recommence after the parties conclude negotiations, formally announce the agreed terms and establish a revised operating timetable.

Premier has described the discussions as constructive. The company has also acknowledged that no assurance exists that Canmax will grant the extension or that any agreement will be concluded on terms acceptable to Premier.

That uncertainty leaves the £550,000 (US$735,930) subscription serving as working capital during negotiations. The raise keeps mining active, adds ore to the stockpile and supports essential site obligations. Its duration will depend on operating expenditure, creditor requirements and the time required to conclude the Canmax discussions.

The transaction does not provide a disclosed timetable for sustained production or quantify the capital required to complete the next optimisation campaign. Those variables will determine whether Premier requires further shareholder funding before Zulu becomes capable of financing its operations from concentrate sales.

The company has linked a successful production campaign to its engagement with potential strategic investors. Sustained plant performance would provide operating evidence on throughput, recovery, product quality and plant reliability, strengthening the technical basis for future investment discussions.

The four billion share issue therefore carries a clear exchange for shareholders. Premier gains the liquidity required to preserve site activity and prepare for the next campaign. Existing investors absorb a larger share count before the company has confirmed revised Canmax terms, a restart date or sustained plant performance.

The next update must establish four points for the market. Investors require the agreed Long Stop Date terms, the revised restart timetable, the available run of mine stockpile and the duration and operating targets of the next campaign.

Premier has secured the cash needed to maintain Zulu through the immediate negotiation period. The funding will create lasting value only where the Canmax extension is concluded and the upgraded plant converts the accumulated ore inventory into sustained production.

The capital raise keeps Zulu moving. The next production campaign must prove that the project can progress beyond recurring optimisation and establish a commercially durable operating rhythm.

- Equity Axis News